April has $500 in the bank. The account will earn 4% in simple interest for the next 3 years. How much interest will April earn? Show your work.

Q: Dina Naples is saving money at the IBM Credit Union for a down payment on a house. How much does she…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Ashley bought a $1,500 sound system on the installment plan. She made a $300 down payment, and she…

A: A sound system has been bought on a down-payment and the balance on installment. The magnitude of…

Q: Stephen has $11,200 in the bank. The account will earn 2.8% in simple interest for the next 5 years.…

A: Simple interest is the method used to charge the interest on the principal amount for a given period…

Q: Allison wants to deposit $4,750 into a savings account. She has two different options, an account…

A: An interest advantage is considered beneficial for the party receiving the interest payments, as it…

Q: Ms. Whitmell is helping her two friends, Sally and Johnny, invest money to save for the future.…

A: Sally Present value = $1,200  Interest rate = 3.8% per annum compounded quarterly Johny Present…

Q: Your grandmother has been putting $600 into a savings account on every birthday since your first…

A: The future value of an annuity can be calculated using the formula,

Q: Marta needs some quick cash for books at the beginning of spring semester, so she borrows $500 at 9%…

A: We can use the formula for simple interest:Simple interest = Principal × Rate × TimeHere, Principal…

Q: One month from​ now, Kelly will make her first monthly contribution of ​$250 to a​ Tax-Free…

A: Future value = $55,000Interest rate = 7% compounded annuallyMonthly contributions = $250

Q: A bank offers a savings account with a 3% annual interest rate, compounded monthly. Sars wants to…

A: The objective of the question is to find out how much money Sara needs to deposit now in order to…

Q: If Laura invests $1,230.00 in an account earning 2.95% simple interest, how much money will be her…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Sam has $6,596.43 in her bank account. Sam wants to know how much per month she must contribute to…

A: We need to rearrange formula below and solve for PMT (periodic payment). In the formula below:FV =…

Q: Claudia intends to accumulate $35,000, so 6 months earlier she opens an account with $7,500, earning…

A: Simple interest = Principal * interest * time Amount = Principal + simple interest Amount =…

Q: Howard is saving for a long holiday. He deposits a fixed amount every month in a bank account with…

A: Effective interest rate is 7.9% Future Value is $11,000 Time period is 5 years or 60 months To Find:…

Q: What is the amount of each payment?

A: Given in the question: Borrow amount = $50,000 Interest Rate = 12% Time = 4 Years Loan has to be…

Q: Starting today, Jamie deposits $100 in a savings account at the beginning of each month. If the…

A: Here,Monthly Deposits is $100Interest Rate (r) is 6%Time Period (n) is 6 yearsCompounding Period (m)…

Q: on needs to save some money to buy her first car after she graduates. At the beginning of each…

A: A key idea in finance and investment research is the future value, which is used to assess the…

Q: for just one year of spending $100 on dinner every other saturday how much would debbie pay in…

A: For one year of spending $100 every other Saturday, the total number of charges would be:Number of…

Q: Laura opens a money market account that earns 3.0% per year by depositing $15,000. She then deposits…

A: Compounding is a technique through which future value (FV) of present amount is computed by using an…

Q: Arnie invests $18,400 in an account that pays an annual interest rate of 15 %. How much money does…

A: Present Value = pv = $18,400Interest Rate = r = 15%Time = t = 1 Year

Q: Julie deposited some money in a savings account this morning. Her money will earn 5 percent…

A: Computation:

Q: Suppose Nicole deposits $50,000 in an account that pays 9% compounded annually. How long does it…

A: Given data; Present value = $50,000 interest rate =9% future value = $ 125,000

Q: Nick invested $2,000 in a bank savings account today and another $2000 a year from now. If the bank…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: Yolanda deposited $1,600 at the end of each six months for 2 years in a savings account. If the…

A: Future value (FV) refers to the sum value of current assets of the company which is evaluated at a…

Q: Chris invests $19,000 at 4% simple interest for 7 year. How much is in the account at the end of the…

A: Investment is the practice of exchanging current revenue for an asset that is expected to provide…

Q: Mark deposits $900 at the end of each month in a savings account earning 4.5% quarterly. How soon…

A: Future value refers to the future value of the cash flows that are compounded over a given period of…

Q: Two years ago my daughter was born. On the day she was born I put $4000 into an account for her. The…

A: Future worth is the worth of current amount at some future specified date considering compounding…

Q: How much will Sarah save in a money market account earning 5.2% interest per year if she opened the…

A: Annuity refers to a stream of constant and usually fixed cash flows. Here the monthly deposit of…

Q: Michelle Payne deposited $16,000 in a savings account paying 6.25% simple interest. How long (in…

A: Calculation of Time Period of Deposited Amount Simple Interest Formula  A = p (1 + rt) Here A =…

Q: Suppose Miss Roxanne Davenport is 25 years old right now and puts away $1,800 per quarter in an…

A: given, rate (r) = 6% quaterly payment (A) =$1800 frequency of compounding (m) = 4 age = 25

Q: LaTisha owed $65,000 when she graduated from college. Suppose her 10-year loan had an APR of 4.5%…

A: The total interest spent on loan will be Total interest on loan =Monthly payment*number of periods…

Q: Michelle wants to borrow $4,500. Bank A will lend Michelle the money at a simple annual interest…

A: Formula: Interest amount = PTR / 100 P = Principal  T = Time period R = Rate of interest.

Q: Tina deposited $20 in a savings account earning 5% interest, compounded annually. To the nearest…

A: Interest is the amount charged or received for loan taken or investment made. There can be simple…

Q: Can you please help me work this problem out in detail?   Carol is depositing $250 into an account…

A: The amount deposited every six months is $250. The total number of deposits in 5 years would be 10.…

Q: Alien Jackson has $2,000 on her credit card which charges a 23% interest rate. If she wants to pay…

A: It is a case of amortization of a loan that is to be paid in 4 years on a monthly basis. To repay…

Q: Steven just deposited $10,000 in a bank account that has a 12% interest rate.  Steven also plans to…

A: Future value is a concept in finance that refers to the amount of money an investment or a series of…

Q: Sara deposited $3000 in an account that earns 5.5% simple interest. How much money will be on…

A: A = P * (1 + rt) A = final amount p = Present value r = Interest rate T…

Q: A trustworthy friend asks to borrow money from you today. She promises to pay you exactly $3750 in 2…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Mary wants to have $14000 for a trip to Mexico in five years. How much does she need to deposit at…

A: The future value of annuity would be considered the value accumulated in future with a view to…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.